Confirmation interest rates are likely to hit 6% before dropping has sparked angry protests across the industry.
A Bank of England inflation report today hints the base rate will have to climb from 5.75% in a bid to bring inflation down towards the 2% level. But some critics have jumped on the report, and claim a vote for an increase will be secured as soon as September. Ian Kernohan, economist at Royal London Asset Managament, says the housing market is going to take a heavy hit should a rise be approved. “The latest inflation report sanctions a further increase in interest rates to 6%,” he says. “Since the hawks on the MPC are keen to move quickly, they will vote for a rise in September. “Other ...
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